UK FCA Confirms Increase to FOS Award Limits for 2026/27
Summary
The UK FCA has confirmed increases to Financial Ombudsman Service award limits for the 2026/27 financial year effective April 1. Maximum awards rise to GBP455,000 for complaints relating to acts or omissions on or after April 1, 2019, up GBP10,000 from the prior year, and to GBP205,000 for earlier complaints, up GBP5,000. These annual adjustments follow Consumer Prices Index inflation.
What changed
The UK FCA has confirmed annual inflation-linked increases to Financial Ombudsman Service award limits effective April 1, 2026. The upper limit for complaints involving acts or omissions from April 1, 2019 onward rises by GBP10,000 to GBP455,000, while the limit for older complaints increases by GBP5,000 to GBP205,000.\n\nFinancial services firms regulated by the FCA—including banks, insurers, and financial advisers—face greater potential liability exposure from FOS complaints as a result of these higher caps. Compliance teams should review complaint handling procedures and ensure adequate financial provisions are in place to address the increased award thresholds.
What to do next
- Review and update complaint handling procedures to account for higher award exposure
- Assess financial reserves and insurance coverage for potential FOS claims
- Monitor FCA guidance on implementation of the new limits
Archived snapshot
Apr 10, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
April 9, 2026
UK FCA Confirms An Increase To FOS Award Limits
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The UK Financial Ombudsman Service (FOS) has announced that the UK Financial Conduct Authority (FCA) has confirmed increases to FOS' award limits for the 2026/27 financial year, in line with inflation measured by the Consumer Prices Index. From 1 April, the maximum award the FOS can require a firm to pay will increase to GBP455,000 for complaints relating to acts or omissions occurring on or after 1 April 2019 (an increase of GBP10,000 on the previous year), and to GBP205,000 for complaints relating to acts or omissions before that date (a rise of GBP5,000 over the previous year). The different limits set annually continue to apply depending on when the relevant complaint was brought to the FOS, with more information available on the FOS webpage on understanding compensation.
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